STC seeks cut price Vodafone Egypt deal - Mobile World Live

STC seeks cut price Vodafone Egypt deal

08 SEP 2020

STC reportedly opened discussions to reduce its $2.4 billion offer to acquire a 55 per cent stake in Vodafone Egypt, as a deadline to move forward with its initial bid nears.

Bloomberg reported the Saudi operator is now actively engaging with Vodafone Egypt to reduce the price, which it initially agreed in late January.

It first hit the pause button on the proposed deal in April, halting negotiations with banks regarding a $2 billion finance package due to the impact of the Covid-19 (coronavirus) pandemic on its business.

In July, STC then extended a memorandum of understanding on the deal by 60 days, again blaming the disruption caused by the health crisis.

STC’s initial offer gave Vodafone’s Egyptian unit a total enterprise value of $4.35 billion, with the remaining stake held by state owned Telecom Egypt.

Aside from agreeing a new price, Telecom Egypt’s stake could also prove problematic for STC.

When revealing its Q2 financial results last month, Telecom Egypt said it was considering its strategic options for its Vodafone holding, which could include selling it or potentially rivalling STC to buy the remaining shares.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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